Welcome to the November edition of the Cascade Accounting & Tax Newsletter!
We’re here with important updates, tax planning tips, and essential reminders to keep you informed and on track.
Gemma’s growing family & 10 years of service
Gemma welcomed her son, Elias on 6 May 2024. We extend Gemma and her family congratulations!
On 17 November 2024 Gemma celebrates 10 years service with Cascade Accounting & Tax!
We thank Gemma for her commitment to you, our valued clients and to being a valuable member of Team Cascade!
Gemma is back from Maternity leave and now working 16 to 20 hours per week.
Mid-Year Tax Planning Tips for 2025
We are almost halfway through the 2024-25 financial year, here are some strategies to optimise your tax position:
Upcoming Due Dates for Lodgement & Payment:
- September 2024 BAS – 25 November 2024
- October 2024 IAS for wages – 21 November 2024
- November 2024 IAS for wages – 21 December 2024
- December 2024 Superannuation – 28 January 2025
- December 2024 BAS – 28 February 2025
- 2024 Income Tax Return – 15 May 2025
Review Your Deductions
Ensure all deductible expenses—like business-related vehicle, travel, and home office costs—are well-documented to reduce your taxable income.
Superannuation Contributions
If you haven’t maximised your concessional contributions cap, you have until 30th June 2025 to make additional contributions. This is an effective way to lower your tax while growing your retirement savings. To make additional contributions, you can either make a salary sacrifice contribution through your payroll or you can make a personal contribution. The latter requires specific paperwork to be lodged with the ATO via your superannuation fund.
Asset Purchases and Instant Asset Write-Off
For the 2024 and 2025 financial years the Instant Asset write off is $20,000. Assets costing over $20,000 will be subject to Small Business pools – 15% in the first year and then a deduction for 30% of the pool of the pool balance for subsequent years.
Protect your franking credits
We had a client about to pay a dividend to a trust with losses.
They were about to lose $15,000 in franking credits. By some clever tax planning we were able to move other income into that trust, bring it into a taxable situation and unlock the $15,000 of franking credits as a tax credit for a director to use against other income. Talk to us to see how we can maximise the effectiveness of your tax planning.
Australian Business Number (ABN) Cancellations
The ATO have been aggressively cancelling ABN’s for entities they perceive as non-lodgers.
We recently saw an ABN cancelled for a therapist that had ignored all ATO correspondence for over two years.
This means that they can no longer legally operate in Australia. This could potentially make insurances invalid and means business customers can’t claim GST input credits.
Important Payroll Update: Pay Day Super
The ATO has introduced new regulations for superannuation payments known as “Pay Day Super.” From 1st July 2026, employers will need to pay super contributions at the same time as wages are paid, rather than the current quarterly schedule.
While this change is still 18 months away, it’s a good idea to start preparing:
Review Cash Flow: As super payments become more frequent, ensure your cash flow can accommodate these regular contributions.
Streamline Payroll Systems: Update your payroll processes so superannuation contributions can be processed alongside wages.
Stay Informed: Cascade Accounting & Tax will keep you updated on any additional ATO guidance and help you make a smooth transition when the time comes.
Most accounting software providers are actively preparing for this change.
ATO Aggressive Debt Collection
The ATO has its “Cranky pants” on like I have never seen before. They are more aggressively chasing debts and being a lot harsher on the remittance of interest and penalties.
We recommend that anyone with tax debts move quickly to
- Get their outstanding lodgements up to date
- Set up payment plans
Do remember that once you have a payment plan in place ALL future lodgements and payments must be on time or your payment plan is breached.
There is also talk of removing deductibility of interest paid to the ATO.
The ATO has had the option to levy super guarantee charge and to flex its muscle to fine for each employee and to remove the tax deductibility for late payment. Don’t let this happen to you. Lodge and pay your super by the 28th day of each new quarter.
Strangely the ATO still are not bothering to chase long term non lodgers. Surely they can use their data matching resources to identify them! Lobby your federal member about this. The tax they don’t pay means more tax burden for you and I to carry.
Other Updates
Director ID Requirement: All company directors must now obtain a Director Identification Number (DIN) as part of the government’s initiative for data integrity. Compliance is mandatory, so reach out to us if you need help. You need to provide a director ID number when updating an ASIC record to include a new director.
Payroll tax: If you are based in Queensland and pay over $1.3 Million in wages & super in one financial year you are liable for payroll tax. The tax is levied at 4.65% of the wages and super that exceed $1.3 Million. This is further complicated if you have any interstate employees or if you own over 50% of multiple companies.
See our updates at [insert Payroll Tax Groups link]
Preparing for 2025: Digital Record-Keeping
As part of the ATO’s push for digital compliance, businesses are encouraged to maintain electronic tax records for a minimum of five years. Need advice on setting up a secure, efficient record-keeping system?
We’re here to help.
Cascade Accounting & Tax Services Reminder
Remember, we offer a comprehensive range of services:
- Help you to Understand your Numbers!
- Tax Advice & Planning
- Business Structuring & Setup
- GST, Payroll and Income Tax Compliance
- Tax Planning for Individuals and Small Businesses
Stay Connected
Whether you’re a long-time client or new to Cascade Accounting & Tax, we’re here to support you in reaching your financial goals.
Stay in the loop with all things Cascade! Follow us on our social media channels for updates, client stories, and productivity tips to keep your practice running smoothly.
LinkedIn: Cascade Accounting & Tax
Facebook: Cascade Accounting & Tax
Instagram: @cascadeaccountingandtax
Have questions or need assistance? Our dedicated support team is just a call or email away. We’re here to help you get the most from Cascade Accounting & Tax.
Contact us on ccs@cascadeconsulting.com.au or + 61 7 3422 1333
